BoJ remain confident 2% inflation target will be reached - UOB

Analysts at UOB Group explained that last Friday, the Bank of Japan (BoJ) left its main policy settings unchanged i.e. the -0.1% interest rate on banks’ marginal excess reserves and its pledge to keep 10Y JGB yields at around 0%. 

Key Quotes:

"Neither did it alter its purchase targets for JGBs, ETFs or J-REITs. Board member Goushi Kataoka continued to dissent in favour of the Bank pursuing a more accommodative policy stance."

"However, the majority of the Board believes that current policy settings are sufficient to help the economy maintain a moderate expansion, which they hope will generate a more positive output gap, lift inflation expectations and eventually lift inflation to the Bank’s 2% target. Two new Deputy Governors will join the Board for the next meeting."